Bitcoin, Ethereum, and a slew of other big cryptocurrencies have all seen massive overnight gains in a surprising move, bringing the crypto market back to life.
The cryptocurrency market has mounted a robust 8% recovery in the last 24 hours with an unexpected move from Bitcoin (BTC) rebounding roughly 8% and approaching $42,000 levels Wednesday morning.
Ethereum, the second-largest cryptocurrency, saw similar positive growth, reaching $2,750 and rising 7% in the last 24 hours, leading altcoins to recover across the board.
As all markets, including crypto, respond to the ongoing Russian invasion of Ukraine, the market has been in a downtrend amid an uncertain macro environment. The Federal Reserve’s proposed financial tightening to combat inflation has also contributed to the steep drop.
The market’s recent trend reversal, which has seen it gain over $175 billion in the last 24 hours as of writing, appears to be the result of a leaked press release from US Treasury Secretary Janet L. Yellen, which describes how the government aims to regulate in the industry.
“A presidential executive order on cryptocurrencies would ‘support responsible innovation’ as it coordinates U.S. policy across agencies,” Yellen noted in a statement that was supposed to come out on Wednesday but came out late Tuesday.
“Under the executive order, Treasury will partner with interagency colleagues to produce a report on the future of money and payment systems,” Yellen added.
The White House’s long-awaited executive order on cryptocurrency has recently gotten a lot of attention. Crypto Twitter reacted positively to Yellen’s words, including billionaire and Gemini co-founder Cameron Winklevoss, who applauded the impending executive order.
Although the market has reacted positively to Yellen’s comments, concerns about crypto’s application for criminal financing continue. “The executive order will address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy,” Yellen’s now-deleted statement said.